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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
18-F-0039
November 15, 2017
Why We Did This Review
We performed this audit in
accordance with the Government
Management Reform Act, which
requires the U.S. Environmental
Protection Agency's (EPA's)
Office of Inspector General to
audit the financial statements
prepared by the agency each
year. Our primary objectives
were to determine whether:
•	The EPA's consolidated
financial statements were
fairly stated in all material
respects.
•	The EPA's internal controls
over financial reporting were
in place.
•	EPA management complied
with applicable laws and
regulations.
The requirement for audited
financial statements was enacted
to help bring about improvements
in agencies' financial
management practices, systems
and control so that timely,
reliable information is available
for managing federal programs.
This report addresses the
following:
• Operating efficiently and
effectively.
Send all inquiries to our public
affairs office at (202) 566-2391
or www.epa.gov/oia.
EPA's Fiscal Years 2017 and 2016
Consolidated Financial Statements
EPA Receives an Unmodified Opinion
We rendered an unmodified opinion on the
EPA's consolidated financial statements for
fiscal years 2017 and 2016, meaning they were
fairly presented and free of material
misstatement.
Internal Control Material Weaknesses and
Significant Deficiencies Noted
We noted the following material weaknesses:
•	The EPA's accounting for software continues to be a material weakness.
•	The EPA incorrectly recorded unearned revenue for Superfund special
accounts and did not reconcile unearned revenue for those accounts.
We noted the following significant deficiencies:
•	Additional efforts are needed to resolve the EPA's cash difference with the
U.S. Treasury.
•	The EPA needs to appoint a Project Manager to oversee the management
of Compass Financials, which is the agency's accounting system, and to
improve acquisition planning.
Compliance With Laws and Regulations
We did not note any significant noncompliance with laws and regulations.
Recommendations and Planned Agency Corrective Actions
The EPA agreed with our findings and recommendation and expects to
complete the corrective action in fiscal year 2018.
We found the EPA's
financial statements to be
fairly presented and free
of material misstatement.
Listing of OIG reports.

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